Crypto Buzz: Litecoin & Hedera ETFs Await SEC Approval
Canary Capital is at the finish line for launching its groundbreaking Litecoin (LTC) and Hedera (HBAR) spot Exchange Traded Funds (ETFs). All preparations are complete, but an unforeseen administrative hurdle – the U.S. government shutdown – is temporarily holding back these promising investment products. Despite the U.S. Securities and Exchange Commission (SEC) being in a limited operational state, analysts remain highly optimistic, believing that approval is only a matter of time.
Bloomberg ETF analysts Eric Balchunas and James Seyffart affirm that Canary Capital has "crossed the finish line," indicating readiness to operate as soon as the SEC resumes full activity.
Detailed Information on Canary Capital's ETF Offerings
Fund Names and Tickers
The Litecoin spot ETF will trade under the ticker LTCC, and the Hedera spot ETF will use HBR. These are significant steps marking the entry of regulated altcoin investment products into the market.
Management Fees
Canary Capital has set a management fee of 0.95% for both LTCC and HBR. While this fee is higher compared to some spot Bitcoin ETFs (typically ranging from 0.2% to 0.5%), analysts consider it "quite normal" or "standard" for first-generation crypto ETF products. This is attributed to the increased complexity in custody, valuation, and liquidity management for altcoins like Litecoin and Hedera.
Fund Structure and Custody
Both ETFs will directly hold the underlying cryptocurrency assets. Regulated custody providers such as BitGo and Coinbase will be responsible for the secure oversight of these tokens. The Net Asset Value (NAV) will be calculated daily, aggregating data from multiple exchanges around 4 PM ET, ensuring transparency and accuracy.
Launch Readiness
Canary Capital has demonstrated thorough preparation, having submitted its final amendments to its S-1 filings on October 7, 2025. These amendments include crucial details regarding fees and tickers, which are considered the "final step before launch," signaling the fund's readiness to operate once it receives the green light from the SEC.
Impact of the U.S. Government Shutdown
Approval Delays and Limited SEC Operations
The U.S. government shutdown, active in early October 2025, has caused significant disruption to the SEC's operations. The commission is operating with a very limited staff, focusing only on essential functions. This means that routine reviews and approvals for new financial products like ETFs have been put on hold. The SEC notably missed the initial decision deadline for the Litecoin ETF due to staff limitations.
New Deadlines
As a result of these delays, the next review deadline for the Hedera (HBAR) ETF has been extended to November 8, 2025. This interruption is creating a backlog of work that the SEC will need to address once the government resumes full operations.
Market Outlook and Sentiment: Significant Optimism
High Probability of Approval
Despite the administrative hurdle, market sentiment and analyst perspectives remain overwhelmingly optimistic. Many experts estimate there is a greater than 90% chance these ETFs will be approved once the SEC resumes full activity. Data from Polymarket even suggests a 98% probability for the Litecoin ETF's approval, reflecting strong investor confidence.
This optimism is bolstered by regulatory clarity: Litecoin is classified as a commodity, and Hedera benefits from a favorable regulatory framework, mitigating concerns about securities classification.
Paving the Way for the Altcoin Market
If approved, the LTC and HBAR spot ETFs would not only be a victory for Canary Capital but also a positive signal for the entire altcoin market. They could open the door for a wave of new altcoin investment products, expanding access for investors beyond Bitcoin and Ethereum. Canary Capital is also actively preparing filings for XRP and Solana ETFs, positioning itself as a leader in the evolving altcoin ETF segment.
Impact on Asset Prices
The delay in approval could temporarily affect investor confidence and potentially cause some volatility in the altcoin market. Some analysts caution about the possibility of LTC price experiencing a corrective phase if uncertainty persists. However, this is generally considered short-term fluctuation before long-term potential is realized.
Conclusion
Canary Capital's Litecoin and Hedera spot ETFs are poised to make history, representing a significant step in the institutionalization of the cryptocurrency market. While the U.S. government shutdown poses a temporary "pause," the market and experts remain highly confident in their impending approval. Once the SEC returns to full operation, we can expect the "green light" to shine, ushering in a new era for altcoin ETF products and enhancing traditional investor participation in the digital asset space.
Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.